RICS: Construction Activity to Record Robust Growth in 2013

Q4 2012 RICS Hong Kong Construction Market Survey

HONG KONG, March 6, 2013 /PRNewswire/ -- Headline construction output looks set to increase further as the workloads are expected to rise over the coming twelve months, says the inaugural RICS( http://www.ricsasia.org ) Hong Kong Construction Market Survey. The survey indicates that the sentiment within the industry is upbeat with the headline workloads net balance recording a very firm positive reading.

(Logo: http://www.prnasia.com/sa/2009/08/17/200908171721.jpg )

Over the past three months, workloads continued to increase significantly in most parts of the industry except the private industrial sector which showed declining workloads. Workloads for infrastructure and public non-housing grew strongly in the past three months, while workloads for energy, oil and gas remained flat. Private housing and private commercial also recorded increasing workloads.

Respondents are optimistic that the number of projects seen over the past three months will continue to increase in the coming twelve months with forward-looking indicators including workloads, employment and profit margins remaining in positive territory. Confidence is most upbeat regarding the prospects for workloads in Hong Kong as the government has recently unveiled its plan to build more infrastructure and housing to ease the demand.

Meanwhile, a substantial proportion of respondents (54%) expect employment in the sector to rise. The average projected gain in employment and profit margins are both in the ranges between 2.5 and 5%. Unsurprisingly, given the strength of the workload data, shortages of skilled labor are cited as the main issue limiting output. Indeed, the survey reports that skills shortages are prevalent in all areas including quantity surveyors and other construction professionals such as bricklayers, plasterers, carpenters, and electricians.

Commenting on the RICS Hong Kong Construction Market Survey, Kenneth Kwan, Chairman of RICS Hong Kong, said, "With the Government's recent announcement of the abortion of the Application List System for Land Auction, more land will certainly be auctioned in the near future. As such, there will be even more developments anticipated in the coming few years. These developments are crucial for Hong Kong to maintain as a world class city be they commercial or residential. Although the construction labour market and professional market are tight at the moment, these should be viewed as a happy problem to be resolved."

Notes to Editors:

Headline Net Balance for Total Construction Workloads: An unweighted average of all of the sectors (in net balance terms) covered in the survey.

Net Balance: Proportion of surveyors reporting a rise in workloads minus those reporting a fall (if 30% reported a rise and 5% reported a fall, the net balance will be 25%).

About the Survey: The RICS Hong Kong Construction Market Survey is a quarterly sentiment survey of respondents who operate in the construction market sector.

About RICS & RICS Asia

RICS is the world's leading qualification when it comes to professional standards in land, property and construction. In a world where more and more people, governments, banks and commercial organisations demand greater certainty of professional standards and ethics, attaining RICS status is the recognised mark of property professionalism.

Over 100,000 property professionals working in the major established and emerging economies of the world have already recognised the importance of securing RICS status by becoming members.

RICS is an independent professional body that since 1868, has been committed to setting and upholding the highest standards of excellence and integrity - providing impartial, authoritative advice on key issues affecting businesses and society. RICS is a regulator of both its individual members and firms enabling it to maintain the highest standards and providing the basis for unparalleled client confidence in the sector.

The RICS Asia supports a network of over 11,000 individual professionals across the Asia Pacific region with an objective to help develop the property and construction markets in these countries, by introducing professional standards, best practice and international experience. It promotes RICS and its members as the natural advisors on all property matters. It also ensures that services and career development opportunities are provided to members.

The RICS Asia region covers national associations and local groups locating in Brunei, Malaysia, Singapore, Thailand, The People's Republic of China and the SAR Hong Kong. It also has members working across the region such as Bangladesh, Bhutan, Burma/Myanmar, Cambodia, Indonesia, Japan, Kiribati, Laos PDR, Macao, Mongolia, Nepal, North Korea, South Korea, Taiwan region, The Maldives, The Philippines, Timor East and Vietnam. For more information, please visit: www.ricsasia.org

Media enquiry, please contact:

RICS Asia Public Relations Representative

Mr Andy Hung / Mr Timothy Wong

T: +852-2114-0270

F: +852-3163-2340

M: +852-9254-9250 / +852-6485-3225

E: andy@creativegp.com / timothy@creativegp.com

SOURCE　Royal Institution of Chartered Surveyors